Dow Jones slides on strong jobs report; Silicon Valley Bank crashes 66% on bank run fears
The Dow Jones Industrial Average briefly fell more than 175 points on Friday as investors digested a stronger-than-expected jobs report from the Labor Department. SVB Finance ( SIVB ), the holding company for Silicon Valley Bank, crashed another 66% early Friday morning amid growing fears of a bank run before the stock was halted.
Late Thursday, Bloomberg reported that venture capital funds, including Peter Thiel’s Founder Fund, advised their portfolio companies to pull their money out of Silicon Valley Bank. Friday’s early drop follows Thursday’s 60% crash that sent shares near their lowest level since September 2016.
A key jobs report from the Labor Department showed the US economy added 311,000 jobs in February, more than expected, with the unemployment rate at 3.6%, higher than forecast. Econoday estimates forecast 220,000 in February excluding farm payrolls, with the unemployment rate at 3.4%.
On the earnings front, DocuSign (DOCU), Space (GPS), Oracle (ORCL) and Ulta beauty (ULTA) was on the move Friday morning.
DocuSign fell 16% after the company announced that CFO Cynthia Gaylor is leaving the company. The e-signatures provider reported better-than-expected results for the fourth quarter. Gap plunged 9% after the company’s fourth-quarter results.
Oracle shed 2.4% on mixed fourth-quarter results. Finally, Ulta shares rose Friday morning after reporting lower-than-expected comparable sales guidance. The company topped Q4 earnings and sales estimates.
The stock market today
EV giant Tesla ( TSLA ) traded down nearly 2% Friday morning. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) was lower after the exchange opened.
IBD Leaderboard watchlist stock Palo Alto Networks (PANW) and New relic (NEWR) – as well as Dow Jones stocks American Express (AXP) and Salesforce (CRM) — is among the best stocks to watch in a struggling stock market rally.
Palo Alto is an IBD Leaderboard Watchlist. New Relic was recently an IBD Stock Of The Day. And Salesforce was featured in this week’s Stocks Near a Buy Zone column.
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Dow Jones today: Oil prices, Treasury yields
After Friday’s market open, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 was down 0.7%. The technology-heavy Nasdaq composite lost 1.1% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 1.1% and the SPDR S&P 500 ETF ( SPY ) fell 0.7% early Friday.
The 10-year US Treasury yield fell to 3.92% on Thursday. Then on Friday, the 10-year yield plunged to 3.75% after the jobs report.
Oil prices continued to fall on Friday morning after three days of losses, with West Texas Intermediate futures falling around 1%. WTI futures were trading just below $75 a barrel early Friday.
Stock market rally
On Thursday, the stock market sold off strongly, as the large share index ended with heavy losses. The Dow Jones Industrial Average fell 1.7%, and the S&P 500 fell 1.85%. The technology-heavy Nasdaq fell 2.05 percent.
Thursday’s Big Picture column commented, “Stock markets sold off sharply despite a surprise jump in weekly jobless claims, as investors hunkered down ahead of Friday’s key February jobs report. The S&P 500 broke below its 50-day support level.”
Now is an important time to read IBD’s The Big Picture column amid the now struggling stock market rally.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to watch: American Express, Salesforce
American Express is falling further away from a 182.25 buy point in a giant cup with handles amid a four-day losing streak, according to IBD MarketSmith chart analysis. Bullishly, the stock’s relative strength line is holding near the tops, a particularly positive sign in a tough market environment. AXP shares fell 1.3% on Friday morning.
JPM stock scores a 92 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Last week, Dow Jones leader Salesforce staged a bullish breakaway gap past 178.94 buy points on strong fourth-quarter results. But breakout gains have disappeared and shares are back below the buy point. Still, the stock’s recent strength is a reason to monitor the software leader in the coming sessions. CRM shares lost 0.2% on Friday.
4 top growth stocks to buy and watch Stock market rally
Top stocks to buy and watch: Palo Alto, New Relic
IBD Leaderboard Watchlist stock Palo Alto Networks continues to trade quietly in the handle following the stock’s 12.5% gain on Feb. 22. Shares remain within striking distance of a base buy point at 193.01. PANW shares were down 0.1 percent on Friday morning.
Background story: On Feb. 21, the cybersecurity giant announced strong results for the quarter ended in January, with earnings reaching $1.05 per share, up 81% from a year earlier, on a 26% jump in revenue to $1.7 billion.
Recent IBD Stock Of The Day, New Relic, is working on a flat base with a buy point at 80.98 in the wake of the February 8 earnings-driven rally. The NEWR share fell 0.4 percent on Friday.
Backstory: New Relic offers a cloud-based suite of software products that enable organizations to collect, store and analyze massive amounts of data in real time. Customers gain increased visibility into their enterprise software to help make data-driven decisions.
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Shares to watch in stock market rally
These are five top stocks to watch in today’s stock market, including two Dow Jones leaders.
|company name||Symbol||Right point of purchase||Type of point of purchase|
|New relic||(NEW)||80.98||Flat base|
|American Express||(AXP)||182.25||Cup with handle|
|Palo Alto Networks||(PANW)||193.01||Consolidation|
|Salesforce||(CRM)||178.94||Cup with handle|
Source: IBD data as of March 9, 2023
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Tesla shares fell another 5% on Thursday, falling for the fourth day in a row. Shares are on pace for a fall of more than 12% this week and closed Thursday about 55% off their 52-week high.
Tesla shares lost nearly 2% Friday morning, threatening to add to Thursday’s losses.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares fell 1.5% on Thursday, and will end the week with a slight loss. The share fell 0.5 percent early Friday.
Microsoft shares extended a losing streak to three sessions, falling 0.5% on Thursday. The stock is still around 20% of its 52-week high after the latest decline. MSFT shares were down 0.7% on Friday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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